Scottish aerosol manufacturers agree to merge

Barony Universal, based in Irvine, and Sanmex International based in Rutherglen, have been competitors for a number of years and have now agreed to merge to create “the largest independent aerosol manufacturer in the UK”

Scottish aerosol and contract fill manufacturers Barony Universal and Sanmex International have agreed to merge.

Barony Universal, based in Irvine, and Sanmex International based in Rutherglen, have been competitors for a number of years and have now agreed to merge to create “the largest independent aerosol manufacturer in the UK”.

Manufacturing will continue at both sites with no effect on jobs.

Most recent accounts filed by Sanmex International for the 2015 year to January 30 show the company has enjoyed strong turnover and profit growth, with sales up more than 15 per cent to £17.1 million and pre-tax profits having more than doubled on the prior year to £548,406 (2014: £248,641).

Sanmex International noted it employed 76 staff on average in the 2015 financial year.

Most recent accounts filed by Barony Universal, covering the 2014 year to December 31 show group turnover dipped five per cent to £21.3 million and pre-tax losses had narrowed to £2.14 million compared with a pre-tax loss of £3.94 million the prior year.

Barony Universal noted it employed on average 138 staff in the 2014 financial year.

The companies said in a statement their “combined expertise and track record” will deliver a “significant competitive advantage, allowing the new company to pursue much larger contracts, both in the UK and in the global marketplace”.

Between them, Barony and Sanmex fill more than 100 million units a year, primarily anti-perspirants, body and hairsprays, as well as household cleaners.

The joint operation will employ “almost 230 people” across the two sites, with a combined turnover of around £40 million.

Steven Groden, the current chief executive of Sanmex International, will now become chief executive of the expanded operation.

He said: “The UK is the largest manufacturer of aerosols per capita in the world, and the sector is highly dependent on speed to market and the ability to respond swiftly to changes in both demand and technology.

“Barony and Sanmex have both enjoyed growth by continually identifying better ways to bring products to market.

“The enlarged operation will benefit from huge shared wisdom and experience, as well as having a nimble and creative R&D function which delivers the innovation which the sector demands.”

“It makes perfect sense for the two firms to combine expertise and operations, strengthening our capabilities and providing us with a platform to grow and win bigger contracts within the global market.

“We are stronger as partners than as competitors and our many blue chip customers have welcomed the news that we will be working together with immediate effect.”